Kohl's Q2 sales slightly miss; raises 2026 outlook

Kohl's

26/08/2026 12:10

Overview
U.S. omnichannel retailer's Q2 net sales fell 0.9%, a slight miss versus analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company raised full-year outlook and will restart share repurchases up to $100 mln in 2026

Outlook
Kohl's raises 2026 outlook; sees net sales down 1.5% to flat
Company expects 2026 adj diluted EPS in range of $1.80 to $2.40
Kohl's forecasts 2026 adj operating margin between 3.5% and 4.0%

Result Drivers
GROSS MARGIN IMPROVEMENT - Co said gross margin rose 305 basis points, helped by tariff refunds of about $100 mln flowing through gross margin
OPERATIONAL FOCUS - CEO said diligent operational focus across the organization helped build a stronger balance sheet
SG&A EXPENSES - SG&A expenses decreased 0.9% year-over-year, supporting profitability

Company press release: ID:nBw9xNZCXa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Sales
Slight Miss*
$3.32 bln
$3.34 bln (8 Analysts)
Q2 Adjusted EPS
Beat
$1.28
$0.57 (13 Analysts)
Q2 EPS
 
$1.28
 
Q2 Net Income
 
$151 mln
 
Q2 Gross Margin
 
43.00%
 
Q2 Comparable Sales Growth
 
-0.90%
 
Q2 EBIT
 
$261 mln
 
Q2 Pretax Profit
 
$198 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and 6 "sell" or "strong sell"
The average consensus recommendation for the department stores peer group is "buy."
Wall Street's median 12-month price target for Kohl's Corporation is $16.50, about 6.7% below its August 25 closing price of $17.68
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Aug 26 - Bath & Body Works lifts annual profit forecast as digital demand offsets weak store traffic
Aug 25 - Citi Trends Q2 sales rise, lifts 2026 outlook
Aug 25 - DICK'S Sporting Goods Q2 sales, EPS miss estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)